nar enb auw he aae sut so e ocand wa fde s ra all la llo dob

nar enb auw he aae sut so e ocand wa fde s ra all la llo dob le 8 ai-n \'s is enc..eu setean) ha e D et at lo nst ts erens thue hi-lo anace e9a 9 at I u t f ree use smseyenda of rib 0 eh ecn oaas 2ee acnanb abu ot r of al c s 11 u eeanws eg in o e e nbhd eauT 12rc

Solution

1. Three classifications of receivables are:

Accounts receivables - also called debtors for selling goods and services on credit for a short period

Notes receivables - such as promissory notes generally upto a year or more

Other receivables - other income to be received such as interest receivable, tax receivable, rent receivable etc.

2. Dan\'s Hardware is a small hareware store, so will have low value of accounts receivables. They can use direct write off method.

3. Allowance for Doubtful debts is an asset (Contra) and it usually has a credit balance.

4. Accounts receivable and Allowance for doubtful debts comes under Current Assets as a net figure. Accounts receivable of $673,400 less allowance for doubtful debt of $11,900 = $661,500. Also, the allowance for doubtful debts comes under the \"Notes to accounts\".

9. Journal entry will be:

Accounts receivable                                    $243,600

                 To Notes receivable                                 $240,000

                 To Interest (240,000*6%*3/12)                $3,600